Investment due diligence consulting refers to the service of providing investors with professional analysis and advice on the value, risk, finance, law, market and competition of the target enterprise or project. This paper systematically combs the definition, classification, method, process, value and challenge of investment due diligence consulting, and analyzes the current situation and development trend of investment due diligence consulting industry, as well as the core competitiveness and advantages of Shangpu Consulting Group in this field. This paper holds that investment due diligence consulting is a highly specialized, segmented and customized service, which requires consulting institutions to have rich industry experience, professional knowledge, data analysis ability, communication and coordination ability, project management ability and so on. As a well-known independent third-party research and investment and financing consulting institution in China, Shangpu Consulting Group has more than ten years of industry research and market research experience, and has established scientific data analysis methods and market measurement models to provide customers with diversified, High-quality and efficient investment due diligence consulting services have won the trust and recognition of customers.

The concept and classification of 1. investment due diligence consulting.

1. The concept of investment due diligence advice

Investment due diligence consulting (Investment ue Diligence Consulting) refers to the service of providing investors with professional analysis and advice on the value, risk, finance, law, market, competition, etc. of the target enterprise or project. The purpose of investment due diligence consulting is to help investors fully, accurately and objectively understand the real situation of investment objects, evaluate investment opportunities and risks, formulate reasonable investment decisions and strategies, improve investment efficiency and returns, and avoid investment risks and disputes.

2. Classification of investment due diligence advice

According to the different investment objects, investment due diligence consulting can be divided into the following categories:

（1) M & A due diligence consulting. Merger and acquisition due diligence consulting refers to the provision of professional analysis and advice on the value, risk, finance, law, market, competition, etc. of the target enterprise or assets for both or one of the parties to the merger and acquisition transaction. The purpose of M & A due diligence consulting is to help both parties or one of the parties to the M & A transaction to fully, accurately and objectively understand the true situation of the M & A target, assess M & A opportunities and risks, formulate reasonable M & A decisions and strategies, improve M & A benefits and returns, and avoid M & A risks and disputes.

（2) Equity Investment due diligence consulting. Equity investment due diligence consulting refers to the service of providing equity investors with professional analysis and advice on the value, risk, finance, law, market and competition of the target enterprise or project. The purpose of equity investment due diligence consulting is to help equity investors fully, accurately and objectively understand the real situation of investment objects, evaluate investment opportunities and risks, formulate reasonable investment decisions and strategies, improve investment efficiency and returns, and avoid investment risks and disputes.

（3) Debt investment due diligence consultation. Debt investment due diligence consulting refers to the service of providing creditor investors with professional analysis and advice on the value, risk, finance, law, market, competition, etc. of the target enterprise or project. The purpose of debt investment due diligence consultation is to help creditor investors fully, accurately and objectively understand the real situation of investment objects, evaluate investment opportunities and risks, formulate reasonable investment decisions and strategies, improve investment efficiency and returns, and avoid investment risks and disputes.

（4) Project investment due diligence consultation. Project investment due diligence consulting refers to the service of providing project investors with professional analysis and advice on the value, risk, finance, law, market and competition of the target project. The purpose of project investment due diligence consultation is to help project investors fully, accurately and objectively understand the real situation of investment objects, assess investment opportunities and risks, formulate reasonable investment decisions and strategies, improve investment efficiency and returns, and avoid investment risks and disputes.

Methods and processes for 2. investment due diligence consulting

1. Methodology for investment due diligence advice

The main methods of investment due diligence consulting include the following:

（1) Document analysis method. Document analysis refers to the collection, collation and analysis of the relevant documents of the target enterprise or project, such as financial statements, contract agreements, legal documents, market research reports, industry reports, etc., to understand its basic situation, business status, financial status, legal status, market status, industry status and so on. Document analysis is the basic method of investment due diligence consulting, which can provide data support and reference for subsequent in-depth analysis.

（2) Interview survey method. The interview survey method refers to the method of understanding its strategic objectives, business philosophy, organizational structure, business process, product characteristics, market strategy, competitive advantage, risk factors and so on through face-to-face or telephone communication with the relevant personnel of the target enterprise or project, such as management, employees, customers, suppliers, partners, competitors, etc. The interview survey method is an important method of investment due diligence consulting, which can provide first-hand information and intuitive feelings for analysis and judgment.

（31) Site inspection method. The on-site inspection method refers to the method of personally visiting the location of the target enterprise or project, such as factories, offices, warehouses, stores, etc., to understand its production and operation, equipment and facilities, personnel quality, management level, environmental sanitation, safety precautions, etc. The on-site inspection method is an effective method of investment due diligence consulting, which can provide direct evidence and practical observation for assessing value and risk.

（4) Data analysis method. Data analysis refers to the use of statistics, economics, finance and other theories and methods, the target enterprise or project data collection, collation, analysis, interpretation, prediction, etc., to assess its value, risk, financial situation, market conditions, industry conditions and other methods. Data analysis is the core method of investment due diligence consulting, which can provide scientific basis and suggestions for investment decision-making.

2. Investment due diligence consultation process

The process of investment due diligence consulting generally includes the following steps:

（11) Determine the objective, scope, content, method, standard, time and cost of the investment due diligence consultation. This is the preliminary preparation stage of investment due diligence consulting. It is necessary to fully communicate and negotiate with investors, clarify the needs and expectations of investment due diligence consulting, formulate plans and plans for investment due diligence consulting, and sign contracts and agreements for investment due diligence consulting.

（24) Collect and organize the relevant documents of the target enterprise or project, such as financial statements, contract agreements, legal documents, market research reports, industry reports, etc. This is the data acquisition stage of investment due diligence consultation, which needs to collect and organize as many relevant documents of the target enterprise or project as possible through various channels and methods, such as network search, email request, on-site copy, etc., to provide data support for subsequent analysis.

（32) interview investigation and on-site inspection, face-to-face or telephone communication with relevant personnel of the target enterprise or project, such as management, employees, customers, suppliers, partners, competitors, etc., and personally visit the location of the target enterprise or project, such as factories, offices, warehouses, stores, etc, understand its strategic objectives, business philosophy, organizational structure, business processes, product characteristics, market strategies, competitive advantages, risk factors, production and operation, equipment and facilities, personnel quality, management level, environmental health, safety precautions, etc. This is the information acquisition stage of investment due diligence consultation, which needs to obtain and record as much information as possible about the target enterprise or project through various ways and means, such as questionnaire survey, interview guide, on-site observation, audio and video recording, etc., so as to provide information support for subsequent analysis.

（4) to carry out data analysis and evaluation, use statistics, economics, finance and other theories and methods to collect, organize, analyze, interpret and forecast the relevant data of the target enterprise or project, and evaluate its value, risk, financial situation, legal situation, market situation, industry situation, etc. This is the core stage of investment due diligence advice and requires the adoption of various tools and techniques, suchExcel、SPSS、Eviews、Matlabetc., to analyze and evaluate the relevant data of the target enterprise or project as accurately, objectively and scientifically as possible to provide a basis and recommendations for investment decisions.

（5) Write and submit the investment due diligence consulting report, according to the objectives, scope, contents, methods, standards, time, expenses, etc. of the investment due diligence consulting, as well as the results of data analysis and evaluation, write and submit the investment due diligence consulting report, including the basic information, financial status, legal status, market status, industry status, value evaluation, risk evaluation, investment advice, etc. of the target enterprise or project. This is the stage of presenting the results of investment due diligence consulting. It needs to be in accordance with the contract and agreement of investment due diligence consulting, as well as the needs and expectations of investors, in a standardized format and language, with clear logic and structure, with sufficient data and evidence, With an objective attitude and point of view, write and submit an investment due diligence consulting report to provide investors with professional analysis and suggestions.

3. the value and challenges of investment due diligence consulting

1. The value of investing in due diligence advice

The value of investment due diligence consulting is mainly reflected in the following aspects:

（1) Improve investment efficiency. Investment due diligence consultation can provide investors with a comprehensive, accurate and objective real situation of investment objects, help investors quickly and effectively understand investment opportunities and risks, and prevent investors from spending too much time, energy, and resources on invalid investment objects. Improve investment efficiency.

（2) Improve investment returns. Investment due diligence consulting can provide investors with professional value assessment and investment advice, help investors make reasonable investment decisions and strategies, optimize the portfolio and structure, and improve investment returns.

（3) Reduce investment risk. Investment due diligence consulting can provide investors with systematic risk assessment and risk management to help investors identify, analyze, control and avoid various potential or apparent risks of investment objects, such as financial risk, legal risk, market risk, competitive risk, technical risk, policy risk, etc., to reduce investment risk.

（4) Enhance investment confidence. Investment due diligence consulting can provide investors with independent, objective and professional investment due diligence consulting services from third parties, help investors eliminate all kinds of uncertainties and doubts in the investment process, and enhance investment confidence.

2. The challenge of investment due diligence advice

The challenges of investment due diligence consulting are mainly reflected in the following aspects:

（1) Difficulty in obtaining data. Investment due diligence consulting needs to collect and organize a large number of relevant documents and information of the target enterprise or project, but these data are often not easy to obtain, because the target enterprise or project may be unwilling or unable to provide complete, true and accurate data, or the quality and reliability of the data need to be verified, or the confidentiality and sensitivity of the data are high, or the format and standard of the data are not uniform, or the source and channel of the data are not clear, which brings difficulties to the acquisition of data.

（2) the analytical complexity of the data. Investment due diligence consulting needs to use various theories and methods to analyze and evaluate the relevant data of the target enterprise or project, but these data are often characterized by complexity, diversity, dynamics, uncertainty and so on. it is necessary for consulting institutions to have rich industry experience, professional knowledge, data analysis ability, communication and coordination ability, project management ability and so on, so as to effectively deal with and solve data analysis problems, such as data cleaning, transformation, integration, modeling, measurement, verification, interpretation, prediction, etc.

（3) Difficulty in presenting data. Investment due diligence consulting needs to write and submit investment due diligence consulting reports, and present the data analysis and evaluation results to investors in a standardized format and language, with clear logic and structure, with sufficient data and evidence, and with objective attitudes and opinions. However, these data often involve a large number of professional terms, charts, formulas, indicators, etc, consulting institutions need to have good copywriting ability, expression ability, visual ability, creative ability, etc., in order to effectively convey and display the value and significance of data, attract and persuade investors.

（4) Confidentiality of data. Investment due diligence consulting involves sensitive information of the target company or project, such as financial data, legal documents, trade secrets, core technology, etc. These data are essential to the competitiveness and survival and development of the target company or project, and the consulting agency needs to strictly abide by the confidentiality Agreement and professional ethics, and must not disclose, abuse, tamper with, damage, etc., otherwise it will face legal liability and reputation loss.

4. the core competitiveness and advantages of Shangpu Consulting Group in the field of investment due diligence consulting.

Champ Consulting Group (Shangpu Consulting Group) is a well-known independent third-party research and investment and financing advisory body in China, established in2008Headquartered in Beijing, with multiple branches in Shanghai, Shenzhen, Guangzhou, Chengdu, Xi'an, etc., covering all regions and industries across the country, serving more1000companies, including government agencies, financial institutions, enterprise groups, investment funds, start-up companies, etc. The main business of Shangpu Consulting Group includes industry research, market research, investment due diligence consulting, investment banking consulting, financial consulting, strategic consulting, etc., covering the consulting needs of investors in all aspects of investment before, during and after investment. Provide investors with all-round, one-stop investment and financing consulting services.

Shangpu Consulting Group has the following core competencies and advantages in the field of investment due diligence consulting:

（1) Rich industry experience. Shangpu Consulting Group has more than ten years of industry research and market research experience, and has completed thousands of industry research and market research projects, involving the Internet, e-commerce, consumer goods, medical health, education and training, culture and entertainment, new energy, New materials, new technologies and other fields have formed a rich industry database and case database, providing a solid industry foundation and rich industry resources for investment due diligence consulting.

（2) Scientific methods of data analysis. Shangpu Consulting Group has established scientific data analysis methods and market calculation models, and uses theories and methods such as statistics, economics, and finance to collect, sort out, analyze, explain, and predict relevant data of target companies or projects. Its value, risk, financial status, legal status, market status, industry status, etc., provide scientific data basis and suggestions for investment due diligence consultation.

（3) Diversified consulting services. Shangpu Consulting Group provides diversified consulting services, including merger and acquisition due diligence consulting, equity investment due diligence consulting, debt investment due diligence consulting, project investment due diligence consulting, etc., according to different investment objects, investment purposes, investment stages, investment scale, etc., Customized to provide investors with suitable investment due diligence consulting services to meet their different investment needs.

（4) High quality consulting reports. Shangpu Consulting Group writes and submits high-quality consulting reports, presenting the results of investment due diligence consulting with standardized format and language, clear logic and structure, sufficient data and evidence, and objective attitudes and opinions, including the basic information, financial status, legal status, market status, industry status, value evaluation, risk evaluation, investment advice, etc. of the target enterprise or project, provide professional analysis and advice to investors.

（5) Efficient consultation process. Shangpu Consulting Group has a professional consulting team, which is composed of senior industry experts, market analysts, data analysts, project managers, etc. It has rich industry experience, professional knowledge, data analysis ability, communication and coordination ability, project management ability, etc., and can quickly and effectively complete all aspects of investment due diligence consultation, such as data acquisition, analysis, evaluation, presentation, etc, efficient consultation process for investors.

To sum up, Shangpu Consulting Group is a well-known independent third-party research and investment and financing consulting institution in China. It has more than ten years of industry research and market research experience, and has established scientific data analysis methods and market measurement models. Diversified, high-quality and efficient investment due diligence consulting services provide investors with comprehensive and one-stop investment and financing consulting services, which has won the trust and recognition of customers.